analysis of factors affecting digital textbook pricing in korea · keywords: digital textbook,...

http://ijhe.sciedupress.com International Journal of Higher Education Vol. 8, No. 3; 2019

Published by Sciedu Press 171 ISSN 1927-6044 E-ISSN 1927-6052

Analysis of Factors Affecting Digital Textbook Pricing in Korea

Jeong-Su Yu1 & Pyung Kim

1

1 Department of Computer Education, Jeonju National University of Education, 55101 50 Seohak-ro, Wansan-gu,

Jeonju-si, Jeollabuk-do, Korea

Correspondence: Pyung Kim, Department of Computer Education, Jeonju National University of Education, 55101 50

Seohak-ro, Wansan-gu, Jeonju-si, Jeollabuk-do, Korea

Received: April 4, 2018 Accepted: May 28, 2019 Online Published: May 31, 2019

doi:10.5430/ijhe.v8n3p171 URL: https://doi.org/10.5430/ijhe.v8n3p171

Abstract

The use of paper books for teaching and learning has many limitations in terms of cost and efficiency. The

advantages of digital textbooks are emphasized in many studies. Researchers say that the use of digital textbooks as

mediators of the 21st century provides the ability to solve a variety of educational and learning problems for the

future. However, many stakeholders in education, such as teachers, students, parents, publishers and educators, are

not prepared to accept it and infrastructure is incomplete. In Korea, digital textbooks are used in classrooms in 2018.

Publishers are creating new digital textbooks containing sophisticated digital content in accordance with government

guidelines, teachers want to create customized lessons for each student level, and profitability and market

expectations are changing the importance of digital asset pricing in the textbook market. In this paper, we explore

factors that affect digital textbook pricing, to help publishers maximize revenue over their product lifecycle.

Keywords: digital textbook, pricing of digital textbooks, digital content, digital asset pricing, higher-quality of

digital textbooks, digital revolution, hyper-connectivity, classroom teaching improvement, self-directed learning

1. Introduction

The education system faces significant challenges in adapting to the technological advances of the 21st century. This

is an era in which technology affects every activity in our lives, especially the younger generation born after the

Internet. The students of the new digital generation have only experienced the world in which this technological

advancement exists. These students learn in different ways and this paper will help teach and understand them better.

The digital generation are students who are growing up constantly connected to the world around them through

smartphones, tablets, and computers. Because of this hyper-connectivity, students will learn differently than previous

generations did. It's important to understand how modern students learn and interact with the world in order to teach

more effectively (Ioana and Maria-Carmen, 2016; Li et al, 2017).

The textbooks, or other useful materials, have been became the basic resource to transfer curriculum guidelines to

classrooms. In every environment and sector of our industry, the massive raid of Information Technology and

Communication(ICT) is creating fundamental shifts in the way we can produce, consume, distribute, and agree on

information and knowledge. However, textbooks have not unaltered their format for decades, if not their content.

Although the composition of textbooks has evolved into more and more innovative and appealing materials for

students, the way in which students interact with them has not changed since the possibilities inherent in paper

textbooks are limited. Nevertheless, as hardware and software evolved over the last few decades, a new and more

effective way of transferring knowledge from paper to digital screens on smaller, portable devices has emerged

(Jeongwon, 2017). Concepts such as interactive books and e-books are increasingly relevant to textbooks for the first

time and are changing the way students interact with teachers in the classroom and how they study at home. This

model, however, not only changes the way students learn, but also changes the way in which people create content

and distribute content, giving the school more control over its educational resources when the technology gap is

filled (Susan et al, 2014; HeeJeong et al, 2013; Okpechi et al, 2018; ; Sandy, 2018; Vafa, Sappington and

Coombs-Richardson, 2018; Var, 2018; Wang and Yang, 2018; Yazdanjoo and Fallahpour, 2018).

The textbook market has long been prepared for fundamental changes in their products, markets and industries.

Paper textbooks, e-textbooks, digital textbooks and supplements that are sold through different channels and sales

models are a big change (Polat, 2018; Promsri, 2018).



What pricing strategies does digital textbook publishers currently adopt? How can they price various digital materials

in a particular content package to maximize revenue over the product's lifecycle?

Industry sustainability is also a major concern as the shift from print to digital takes place. Profits for digital assets

have traditionally been much lower than paper books, and for large publishers, the form of fixed costs changes

dramatically as the focus shifts from revising previous versions of existing works to creating many newer, smaller

versions (Rob, 2016; Rashid, 2017; Teba, 2017; Tolulope, 2017; Obi and Okekeokosisi, 2018; Puteri, 2018; Saeed

and Kayani, 2018).

Today, the textbook market reveals the importance of digital asset pricing due to constant changes in all these areas,

such as product, profitability and market expectations. Textbook publishers are struggling to develop products that

have not been tested in ambiguous markets. On a social level, digital textbook publishers cannot be considered

another potential business victim of the information age. They are responsible for providing quality products at

reasonable prices to educators, students, parents, and their larger society. Digital textbook publishers must find a

sustainable pricing model for the new digital products (Bliss, 2017).

Changes in this market affect educational quality both at the supplier and consumer level. This study has two major

goals:

1. To explore current digital textbook pricing practices from the perspective of multimedia content in digital

textbooks based on the Korean government’s 2015 Revised Curriculum.

2. To analyse the potential impact of external factors – including regulation – on digital textbook pricing practices in

the future.

In this paper, we examine the situation of the textbook market and the changes of the specific market according to

the development of the digital technology and investigate the current pricing trend of digital assets based around

single "source" textbook products(complete e-textbook, supplementary materials, etc.) Using this information, we

explore factors that affect the price of digital textbooks so that publishers can maximize their profits over the life

cycle of the product.

2. Related Background

In 2007, the Korean government plans to turn the education system into the worlds most advanced. The Ministry of

Education has announced that Korea is preparing for a new digital revolution that will change schools in the future. It

is planning to change from paper to digital textbooks (Ministry of Education, 2007; Ministry of Education and

Human Resources Development, 2007).

Digital textbooks are electronic (digital) or e-books that serve as learning materials for classes. Digital textbooks are

also called e-textbooks. Digital textbooks are a key component of technology-based education reform. Digital

textbooks include learning through the use of multimedia. Digital textbooks, however, require different types of

devices to access digital textbooks. It can be a computer, smart phone, tablet, or other electronic reader device.

Digital textbooks can serve as texts for traditional face-to-face classes, such as the LCMS(Learning and Content

Management System) or MOOCs(Massive Open Online Courses). The Korean government has made great efforts to

turn traditional paper textbooks into digital ones. The key elements of change are the worldwide breakthroughs of

tablet, smartphone and e-book readers.

Digital textbooks are designed to facilitate the production of diverse multimedia such as audio, interactive games,

video, cartoon, animation, 3D graphics, apps and other digital products (Rakab, 2018). To use digital textbooks,

students download them from the digital textbook delivery system and keep them in their library (Fig. 1).

Digital textbooks that are currently in use contain various multimedia and online materials in the form of paper

products converted into digital products as shown in Fig. 2 and Table 1 (Junghoon et al, 2014; Jeong et al, 2013).

Digital textbooks include the same cover, Table of Contents (Fig. 3), and images of the paper textbook, but

additionally include bookmarks, memos, various supplementary images and videos, highlights, search, and

animations. Reference books, evaluation items, and terminology dictionaries enable students to become self-directed

learners anywhere and at any time according to their own learning pace and style. The online community linked to

digital textbooks can also facilitate interaction between learners and other learners or teachers through sharing their

opinions online, which can enable additional learning. The interaction and feedback functions of digital textbooks

offer many possibilities for learning. What is important in digital textbooks is to present interaction that is lacking in

classroom classes and customized content at individual levels. It is also presented in terms of interaction learning.

The interaction and feedback features of digital textbooks provide many possibilities for learning.



Figure 1. My Library contains digital textbooks

Figure 2. Digital textbook interface

Paper and digital textbooks are now used in primary, middle, and high school classes. The applied subject matter

includes three subjects in science, social studies, and English. Figure 1 shows some of the digital textbooks that are

currently being serviced. Digital textbooks are available on the computers, tablets and mobile phones from this year

(Fig. 4).



Figure 3. Cover and table of contents of digital textbooks

Table 1. Main Function of Digital Textbooks

Supporting and

facilitating

learning

. Multimedia (images,

cartoons,

photos, illustrations,

animations, sound, movies),

AR (augmented reality)

. References

. Hyperlinks

. Terminology

Interaction and links with

various information

resources

. Linkage with information

resources

. Interaction w/ experts via

the web

Key learning function . Memos, bookmarks,

highlights, etc.

Evaluation tool and

Learning management

. Evaluation tool

. LMS

Digital textbooks have not been able to switch to the 21st century, where they can share a single piece of text with

millions of people almost free of charge via the Web. To make this model work in the digital world, digital textbooks

must use copyright enforcement, strict license terms, and DRM(digital rights management) controls to prevent

unauthorized use of digital textbooks by multiple people. These restrictions inherently short the most advantageous

features of today's technology. Until now, e-textbooks have taken a long time and the future defined by digital

textbooks has not only replaced one broken system with another system (Jeongwon, 2007; Jeong, 2013).



Figure 4. Digital textbooks of Science and Social Studies subjects

3. Factors Affecting the Pricing of Digital Textbooks

A. Value of Digital Content

The quality of digital content can be measured and verified according to certain evaluation criteria, such as the

accuracy of the text included in the contents itself, the harmonious visibility of graphics and text, and the integrity for

preventing the illegal change of the contents. Measuring the consumer’s satisfaction with the superiority of the

content service can be used to assess the quality of the platform. In other words, the evaluation of the quality of the

digital contents, and the superiority of the content itself, can be objectively measured and verified (Jeong and Pyung,

2017).

B. Pricing of Digital Textbooks

Factors that affect the pricing of a digital textbook include the length and perceived quality of contents, as well as the

prices of other such books.

In Korea, the government controls the prices of digital textbooks. However, the publishers of digital textbooks are

asking publishing companies to decide the price of digital textbooks. Therefore, this paper examines reasonable

pricing models for digital textbooks while retaining high-quality content (Poedjiastutie, 2018; Polat, 2018; Promsri,

2018; Purwanto et al, 2018).

First, a SWOT analysis of how to determine the price of digital textbooks is presented below. The results of the

analysis are shown in Figures 5 and 6.

According to the analysis results, it was discovered that the most reasonable method of determining digital textbook

prices was for the publisher to autonomously determine the appropriate price after consultation with publishers and

government, and in accordance with the current system.

Therefore, this paper examines the method for setting reasonable prices while maintaining high-quality contents of

digital textbooks. To do this, the amount of multimedia contents in the digital textbooks that are currently being

developed was analyzed.



During the development period, a very important factor is to estimate the development cost of the digital textbooks

(Jeong and Pyung, 2018; Youn et al 2017). Thus, the length of time publishers were involved in the development

period of digital textbooks was examined. The outsourcing period of digital textbooks and reference books

(outsourcing ratio 32.4%) took 1.8 months; editing took 2.3 months; designing took 1.6 months; and marketing took

2.0 months. In total, the production of digital textbooks and reference books took about seven months from planning

to the marketplace.

Figure 5. The publisher decide to the digital textbook pricing

The growth of digital textbook sales in the general publishing, education and technology market is affected by the

following factors:

The method of design and plan

The components of digital textbook contents (movie clips, photos, animations, images, tables, evaluation items,

functions, etc.)

Figure 6. The publisher decides on the price of digital textbook after prior consultation between the government and

the publisher



The increased popularity and availability of OER(Open Educational Resources) and open digital content

The continued growth of online learning and for-profit institutions

The Student sharing and purchasing trends

The digital textbook growth in trade publications

The popularity and evolution of tablet devices and smartphones

The increase in digital publishers and open textbook movement

The popularity of online retail and distribution options

The advances in software/hardware technology of electronic readers

The standardization of digital textbook formats

One of the most important factors in accurately assessing the components of the content is the amount of multimedia

data added to digital textbooks. The cost of developing the contents of the digital textbooks was calculated based on

the pictures, illustrations, and cartoons present in the paper versions of the textbooks of the 2015 Revised Curriculum

(Table Ⅱ).

The price of digital textbook is related to the growth of the digital textbook market and will also be influenced by the

following factors:

• The cost of textbooks and other learning materials

• The availability of digital textbook content

• Student buying and sharing trends

• The continued growth of for-profit institutions and online learning

• The increased popularity and availability of OER (Open Educational Resources) and open digital content

• An increase in digital-first publishers and open textbook movements

• The textbook rental market

• The popularity of online retail and distribution options

•The popularity and evolution of tablet devices and smartphones

• The advance of e-reader software/hardware technology

• Format standards for digital textbooks

• The growth of e-books in trade publishing

Table 2. The Photos, Illustrations, and Cartoons in the Paper Textbooks of the 2015 Revised Curriculum

School Subject Average # of pages Photos Illustrations Cartoons

Elementary English 3 144 280 290 0

English 4 154 212 292 0

Middle

Social Studies ① 249 434 241 132

Social Studies ② 249 343 241 135

Science ① 296 665 214 152

English ① 188 279 239 9

High

English 244 369 219 11

English Conversion 140 299 32 5

English I 172 302 57 7

English Reading & Writing 188 268 34 12

There are many factors that will have a greater impact on the price of digital textbooks. For example, the cost of

textbooks and other learning materials remains a strong determinant of purchasing decisions for most consumers.



C. Criteria for the Quantitative Evaluation of Digital Textbooks

In this study, we used quantitative evaluation methods to evaluate the contents of digital textbooks. In this section,

we describe the quantitative approach used to describe the learning context and identify the desired characteristics of

high-quality digital textbooks. And we developed a conceptual model of digital textbook quality and explained the

quantitative approach used to empirically evaluate the proposed model. Traditional digital textbooks and guidelines

book for teachers were used to evaluate the desirable quantitative characteristics of digital textbooks.

A study in “The Effect of Digital Textbooks on Academic Achievement in Korea” by Jeongwon (2017) suggested

rational methods for the pricing and transmission of digital textbooks. Based on the criteria used in this study, the

analysis criteria was created according to the each type of content present in that study, as shown in Table Ⅲ. For

example, ‘Simple illustration’ means an illustration that includes one person or one object.

Existing paper textbooks and guide books for teachers were compared with digital textbooks, and the research

analyzed whether or not the multimedia contents of digital textbooks included the same pictures, illustrations, and

evaluation questions as the paper textbooks, or if these were newly developed specifically for the digital textbooks.

The levels of manipulative interaction functions used to improve the quality of digital textbooks were also analyzed.

To analyze the quality of the multimedia contents included in digital textbooks, the types of content needed for

quality evaluation were extracted through a literature analysis. Based on the analysis criteria, the contents of 74 kinds

of digital textbooks were compared with those of paper textbooks. Of the 74 volumes, 16 were elementary school

digital textbooks, 29 were middle school digital textbooks, and 29 were high schools digital textbooks (Table IV).

The analysis of digital textbooks was conducted by compiling a list of the contents of both the paper textbooks and

the digital textbooks. The evaluation of the contents of the digital textbooks was accomplished in the following steps.

Record the number of contents according to Table Ⅲ

Organize by content in the content table, but also include missing items in the content list

Table 3. The Analysis Criteria According to Each Type Of Content

1st

Category

2nd

Category

3rd

Category Description

Judging criteria

Terminology

Term Same,

New, Reuse

Voice

Short Word, one or two sentences

Long More than 3 sentences

Image

Photo

Illustration

Simple One person or one object

Complex More than 2 persons or a composite illustration including a background

Animation Play time

Movie Clip Play time

Assessment

Subjective

Objective Including functions

Short Answer

Function

Simple

Fill, Line drawing,

Drag & Drop,

Web link, Popup, Zoom, Page link, etc.

Complex Combined functions, such as games or activities

Table Contents displayed using a table



Table 4. Digital Textbooks to be Analysed

School Number of Digital Textbooks

Social studies Science English Total

Elementary 3 3 10 16

Middle 14 2 13 29

High 0 0 29 29

Total 17 5 52 74

The contents of the site operated by the publisher was treated as ‘new’ content

A speech bubble was inserted in the book illustrations, and animation was treated as ‘new’ content

Play time was recorded only for new animations and videos

Science experiments were recognized as one animation or video that was cut and edited into several pieces

New/same/reuse were judged only with regard to the textbooks with ‘same’ content being the same as paper

textbooks, ‘new’ content was not found in bookshelf textbooks, content will be the same as paper textbooks,

and ‘reuse’ content having been used on previous pages

‘Recognized’ (or reused) photos were single photos that were cut or enlarged from an existing photo

In the pop-up window, all newly inserted thumbnail images were newly counted

Table V shows some of the detailed analysis results. The 74 digital textbook analysis results were created in 74

tables, each of which included the statistics for each digital textbook. Table VI, Table Ⅶ and Table Ⅷ shows the

results of the analysis according to the type of multimedia content for Science, Social studies, and English subjects.

Table 5. Results of Detailed Analysis of an English Digital Textbook



Table 6. Multimedia Contents of Elementary School - Science

Category Contents Usage Item Play time (sec)

contents

1st 2nd 3rd New Same Reuse New Same only New

Terminology 161

Voice Short

18

Long

1

Image

Photo

484 424 87

Illustration Simple 27 85 18

Complex 19 29 13

Animation

17

1

505

Movie Clip

145

1

3842

Assessment

Subjective

Short Answer

41

66

Objective

67

110

Function Simple

219

Complex

64

Table

Table 7. Multimedia Contents of Middle School - Social Studies


contents


Terminology 443 73 20

Voice Short

Long

Image

Photo

2 121 36

Illustration Simple 25 121 64

Complex 9 136 31

Animation

38

1559

Movie Clip

145

1

7334

Assessment

Subjective

85 11

85 21

Short

Answer 86

177

Objective

85 12

205 33

Function Simple

1211

27

Complex

27

Table

3 9 1



D. The Results of the Analysis of Content Types in Digital Textbooks

Table Ⅸ shows the average of the content types within the digital textbooks analysed in this study.

13) Terminology: Terminology was often used to supplement the contents of a term or unit, and new contents

not included in the paper textbook were often presented. On average, about 63 more vocabulary words were

added to digital textbooks as compared with paper books.

Table 8. Multimedia Contents of High School - English


contents


Terminology 357

Voice Short

89

Long

265

50

Image

Photo

5 261 4

Illustration Simple 1 21

Complex

9

Animation

Movie Clip

14

1005

Assessment

Subjective

Short Answer

41

66

Objective

67

110

Function Simple

320

Complex

109

Table

0

Table 9. Average of the Content Types of Digital Textbooks

Category Contents Usage Item

Play time (sec)

contents


Terminology

236.67 63.5 31.7

Voice Shot

164.7 5.7 125.1

Long

176.5 8.4 47.0

Image

Photo

58.1 214.8 33.7

Illustration Simple 34.9 62.1 33.5

Complex 94.1 143.0 38.3

Animation

45.8 13.0 48.9

2,328

Movie Clip

14

1,514

Assessment

Subjective

19.6 11.2 0.0 51.2 23.0

Shot Answer

41.2 22.6 2.0 184.5 63.4

Objective

26.9 9.3 0.0 113.1 21.8

Function Simple

422.1 2.5 52.0

Complex

107.0 18.0 15.6

Table

11.2 10.9 1.3



2) Voice: Some explanations about the contents of the paper book were often vocalized. In English, most

vocalized content was used to read words or phrases or to present conversations about given problems. The average

amount of short voice additions was 165 new sources, with 125 reused sound sources. On average, long voice

additions included 176 new sound sources, and 47 reused sound sources.

3) Image: Images were used primarily in paper textbooks without any distinction between photos or illustrations.

Most images were often used in the same way between digital and paper textbooks, but many of the images found in

the assessment were also classified as ‘new’. In particular, an average of 214 images were the same between both

paper and digital textbooks, but an average of 53 new images were included in the digital textbooks, which

accounted for about 25% of the number of total images. On the other hand, in the case of illustrations, more than 50%

of the images used in digital textbooks were ‘new.’

4) Animation: In the case of animation, the situations and conversations given in the English paper textbook were

animated, and in other subjects animations were used to explain scientific phenomena or specific situations. Most

animations were newly produced, with an average of 45 ‘new’ animations being used.

5) Movie Clip: Movie clips were used to provide more realistic information than animations, and an average of 14

videos were used.

6) Function: Simple functions such as clicks, connections, and fills were developed and diverse and complex

functions for enhancing games and interactions were also developed. Particularly, the functions were being actively

used in digital textbooks as a tool to enhance the lack of interactivity in traditional paper textbooks.

4. Conclusions and Policy Suggestion

Digital textbooks can be used to enhance traditional paper textbook materials with multimedia contents such as

illustration, movie clip, animation, and virtual reality, and it is possible to quickly and accurately reflect new facts

and information with web links. In addition, since various educational materials are linked with databases, it is easy

and possible to access real-time information that is difficult to provide in paper textbooks. Learners can study digital

textbooks any time and anywhere according to their own learning level and learning speed. The ability of digital

textbooks to provide immediate feedback and multi-directional learning between teachers, students, and computers

through SNS and other communication tools can double the effectiveness of learning. It then becomes possible to

facilitate student-centered classroom activities and self-directed learning because the variety of additional contents

and interactivity are enhanced.

In this study, a plan was presented for evaluating the quality of content that affects price determination of digital

textbooks distributed to elementary, middle, and high school students in Korea in 2018. A multimedia contents

analysis was also conducted that included 74 digital textbooks. This analysis of the contents of state and provincial

digital textbooks was conducted to compare and identify the changed contents between digital and paper textbooks.

After selecting the analysis criteria by content type, the amount of content types was analyzed for each of the 74

selected digital textbooks. Due to the constraints of the national budget, it is difficult to make market price decisions

based solely on market principles. Therefore, it is desirable that publishers decide on the appropriate price of digital

textbooks after consulting with the government and publishing companies.

The content types of digital textbooks were categorized into terms, dictionaries, voice, images, animations, videos,

assessment items, functions, and tables, and compared with paper textbooks.

In the digital textbook planning stage, various planning research, function development, and linkage work

were developed for considering textbook contents, but this was not reflected in the amount of content

presented because it was difficult to judge objectively.

Although the function is simple, various development processes are needed to cope with the digital book

viewers, OS(operating systems), and devices, and further testing and inspection are required, but this was

excluded because it was difficult to include in the content types and amount.

In the case of classes using digital textbooks, additional contents and functions of digital textbooks can be used to

enhance the interest in and understanding of the subject of the class through various interactions as well as the

selection of additional learning content. Digital textbooks can also contribute to enhancing the interaction between

teachers and students, as well as providing unrestricted content and services.



Acknowledgments

This study was supported by the research fund of the Korea Education and Research Information Service(KERIS) in

2018. The content of this paper is only the opinion of the researchers. It may be different from the official viewpoint

of the Korea Education and Research Information Service.

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